Macroeconomics (7th Edition)
7th Edition
ISBN: 9780134738314
Author: R. Glenn Hubbard, Anthony Patrick O'Brien
Publisher: PEARSON
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Question
Chapter 14, Problem 14.1RDE
To determine
Money stock, the currency components of M1, total checkable deposit and travelers checks.
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People in Cambodia keep talking about Bitcoin, a crypto currency (electronic currency). Given the function of money and from the point of view of Cambodian,
(1) please describe the 3 functions of money
(2) given the 3 functions of money, can we regard Bitcoin as money in Cambodia? Please explain your answer
(3) Recently, National Bank of Cambodia (NBC) just launched the new system of payment to facilitate the inter-bank payment transfer and business transaction, called “Bakong” and its mobile app. However, Ms. Chea Serey, Director General of NBC reiterated her statement that “the recently-launched Bakong, an interbank blockchain-based payment system, is not a central bank digital currency (CBDC)”. Using the 3 functions of money, explain why Bakong does not qualify as money?
Real-Time Data Analysis Exercise*
*Real-time data provided by Federal Reserve Economic Data (FRED), Federal Reserve Bank of
Saint Louis.
The table shows the quantities of M1, M2, and their components in August 2022 but with
two values missing and shown in the table as 0.0.
What are the missing values?
>>>
Answer to the nearest 1 decimal place.
Other liquid deposits are $
Demand deposits are $
billion.
billion.
C
Measures and Components of Money in August 2022
M2
Money market funds
Small time deposits
M1
Demand deposits
Other liquid deposits
Currency
Amount
August 2022
(billions f dollars)
21,711.4
1,096.3
162.2
20,452.9
0.0
0.0
2,178.5
By how much has the following US money aggregates grown between January 2018 (i.e. the
month-end amount for Jan. 2018) and September 2022 (i.e. the month-end amount for Sept.
2022)? Tip: You need to download monthly data for both M1 and M2 money aggregates in the
US.
a. US M1 =
b. US M2 =
%
%
Chapter 14 Solutions
Macroeconomics (7th Edition)
Ch. 14 - Prob. 14.1.1RQCh. 14 - Prob. 14.1.2RQCh. 14 - Prob. 14.1.3RQCh. 14 - Prob. 14.1.4RQCh. 14 - Prob. 14.1.5PACh. 14 - Prob. 14.1.6PACh. 14 - Prob. 14.1.7PACh. 14 - Prob. 14.1.8PACh. 14 - Prob. 14.1.9PACh. 14 - Prob. 14.2.1RQ
Ch. 14 - Prob. 14.2.2RQCh. 14 - Prob. 14.2.3PACh. 14 - Prob. 14.2.4PACh. 14 - Prob. 14.2.5PACh. 14 - Prob. 14.2.6PACh. 14 - Prob. 14.2.7PACh. 14 - Prob. 14.2.8PACh. 14 - Prob. 14.2.9PACh. 14 - Prob. 14.2.10PACh. 14 - Prob. 14.3.1RQCh. 14 - Prob. 14.3.2RQCh. 14 - Prob. 14.3.3RQCh. 14 - Prob. 14.3.4RQCh. 14 - Prob. 14.3.5PACh. 14 - Prob. 14.3.6PACh. 14 - Prob. 14.3.7PACh. 14 - Prob. 14.3.8PACh. 14 - Prob. 14.3.11PACh. 14 - Prob. 14.3.12PACh. 14 - Prob. 14.4.1RQCh. 14 - Prob. 14.4.2RQCh. 14 - Prob. 14.4.3RQCh. 14 - Prob. 14.4.4RQCh. 14 - Prob. 14.4.5PACh. 14 - Prob. 14.4.6PACh. 14 - Prob. 14.4.7PACh. 14 - Prob. 14.4.8PACh. 14 - Prob. 14.4.9PACh. 14 - Prob. 14.4.10PACh. 14 - Prob. 14.4.11PACh. 14 - Prob. 14.5.1RQCh. 14 - Prob. 14.5.2RQCh. 14 - Prob. 14.5.3RQCh. 14 - Prob. 14.5.4PACh. 14 - Prob. 14.5.5PACh. 14 - Prob. 14.5.6PACh. 14 - Prob. 14.5.7PACh. 14 - Prob. 14.5.8PACh. 14 - Prob. 14.5.9PACh. 14 - Prob. 14.5.10PACh. 14 - Prob. 14.1RDECh. 14 - Prob. 14.2RDECh. 14 - Prob. 14.3RDECh. 14 - Prob. 14.4RDECh. 14 - Prob. 14.5RDECh. 14 - Prob. 14.6RDE
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Similar questions
- In the following data table, calculate the amount of excess reserves and the monetary base and then use the table to answer the questions that follow. Category Currency, C Deposits, D Reserves, R Required Reserves, RR Excess Reserves Monetary Base Value (Billions of Dollars) 700.00 500.00 31.00 23.00 $8 $731 0.06 0.02 Use the previous data table to fill in 16.13 sing cells in the following table. (Hint: Round to the nearest hundredth.) Ratio Currency Ratio, k Required Reserves Ratio, r Excess Reserves Ratio, l'ex Money Supply Multiplier, MsM 1.4 0.05 16.13 Based on your answers to the previous questions, the money supply isarrow_forwardConsider the following bank. Cash in Vaults=$25 Its deposits at Central Bank-$275 Loans it has made to customers=$1600 Value of government bonds it owns=$100 Deposits made by its customers=$2000 What are the bank's reserves (in dollars)? (Round to two decimal places and do not enter the currency symbol. If your answer is $6.114, enter 6.11. If your answer is $6.115, enter 6.12. If appropriate, remember to enter the - sign.)arrow_forwardSuppose a small country has the following monies in circulation: Cash/currency: $5 million Checkable deposits: $14 million Small-denomination time deposits: $15 million Savings deposits: $20 million Money market deposit accounts: $25 million Share in retail money market mutual funds: $11 million Calculate the value of M1 and M2. Now suppose bank customers transfer $10 million from their savings accounts to their checking accounts. What will happen to the value of M1 and M2 (i.e., will they rise, fall, or stay the same)?arrow_forward
- In 2019 the total amount of currency in circulation was C = $1,745.10 billion. Demand deposits in the U.S. banking system was about $1,524.80 billion. The total amount of bank reserves equaled R = $1,621.6 billion. The required reserve ratio at the time was rr = 10 percent. First, let's calculate the following : Currency-Deposit Ratio, c = (Do not write this as a percentage, write it as a number with two decimals.) Excess Reserve - Deposit Ratio, er = (Do not write this as a percentage, write it as a number with two decimals.) Money multiplier, m = M1 Money Supply, M1 = Billion dollarsarrow_forwardIn May 2017, currency held by individuals and businesses was $1,469 billion; traveler's checks were $2 billion; checkable deposits owned by individuals and businesses were $2,034 billion; savings deposits were $8,958 billion; time deposits were $355 billion; and money market funds and other deposits were $1,746 billion. Calculate M1 and M2 in May 2017.arrow_forwardPlease type the answer by computer, so that I can see it clearly. Suppose the current money supply (M) is 4.8 billion U.S. dollars, the nominal gross domestic product (GDP) is 72 billion U.S. dollars, and the actual gross domestic product (Y) is 12 billion U.S. dollars. Calculate the price level (P) and the velocity of money (V) separately. Show your steps.arrow_forward
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